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In stock or spot futures transactions, there are so -called city merchants and liquidants. Excuse me, their advantages and disadvantages, and please briefly describe their profit models.

2 thoughts on “In stock or spot futures transactions, there are so -called city merchants and liquidants. Excuse me, their advantages and disadvantages, and please briefly describe their profit models.”

  1. 1. It's not for gambling, give you an example: there is a stock for 1 yuan for the selling price, 1 yuan and 1 point is a purchase price, which means that all buyers who buy stocks at this moment will buy 1.01 yuan Stocks will be sold for 1 yuan to the city merchants. If there are 1 million people who want to buy 2 million shares at this moment, and 500,000 people want to sell 2 million shares, then the buying funds (funds from the city merchants) = 2 million multiplication of 1.01 yuan = 2.02 million. And selling funds (the loss of funds for the city business) = 2 million multiplication at 1 yuan = 2 million. Municipal business profits = 2.02 million to 2 million = 20,000. Municipal merchants have obtained 20,000 profits. That is, the profit model of the city merchants may have a handling fee.
    2, there is no liquidation dealer in the stock. As a city merchant, that is, the big brokerage will help you liquidate you on the exchange, so of course you choose to be a city merchant. Stir -fried stocks. It's okay to fry foreign exchange. There is no domestic, only agents, and more troublesome. To stimulate a little bit about frying futures, the gold and silver futures on the night now are very hot.
    3, general institutions cannot be a city merchant, because only independent securities operating legal persons with certain strength and reputation can be used as franchisees, that is, as a city merchant, the liquidator in the stock does not actually have this concept. For this role, the exchange is opened by the country, so you can never be a liquidator of stocks.
    It, frying foreign exchange is relatively mature as the external disk futures such as gold, beauty bronze, etc. It is recommended that you can consider fried outer disk futures. It is not what the institution can do whatever we can do. If you are interested in understanding futures stock knowledge, you can add my friends.

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